ABTL Report - Fall 2026 Edition - Flipbook - Page 4
ABTL - Los Angeles
Fall 2026
Navigating FINRA Arbitration: Lessons from the Trenches
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If a discovery motion is necessary, keep it concise and
focused: identify the speci昀椀c request, explain its relevance, and
state the relief sought without burying the panel in unnecessary
brie昀椀ng or lengthy declarations with numerous exhibits. Once
the hearing begins, do not expect the panel to entertain late
motions to reopen discovery that should have been completed.
providing lists of presumptively discoverable documents. See
FINRA Rule 12506.
Litigators should not equate an expedited process with a
light discovery burden. These document lists can themselves
be surprisingly expansive. For example, for customer disputes,
Document Production List 1 of the FINRA Discovery
Guide lists the 22 categories of documents the FINRA 昀椀rm/
associated person is expected to produce, many of which
seek large categories of documents, such as: “[a]ll notes the
昀椀rm/associated persons made relating to the customer parties
and/or the customer parties’ claims, accounts, transactions,
or products or types of products at issue, including, but not
limited to, entries in any diary or calendar, relating to the
claims or products at issue.” See FINRA Discovery Guide,
Document Production List 1 (Customer Cases), available
at
https://www.昀椀nra.org/arbitration-mediation/rules-caseresources/discovery-guide (last visited Aug. 9, 2026). List
2 sets forth the documents the customer parties have to
produce. See FINRA Discovery Guide, Document Production
List 2 (Customer Cases), available at https://www.昀椀nra.org/
arbitration-mediation/rules-case-resources/discovery-guide
(last visited Aug. 9, 2026).
Motion Practice and Pre-Hearing Briefs
FINRA has no broad equivalent to demurrer or summary
judgment; however, Rule 12504 permits narrow motions
to dismiss. Under FINRA Rule 12504, motions to dismiss
prior to the conclusion of a party’s case-in-chief are strongly
disfavored. The panel may deny a pre-hearing motion to
dismiss, and the movant must obtain the panel’s permission to
re-昀椀le the motion later.
Even where arbitrators have legal or industry experience,
their familiarity with particular products, regulatory concepts,
or industry practices may vary. A pre-hearing brief can be
an effective way to explain industry terminology, regulatory
concepts, and product features clearly to the panel in advance
of any opening presentation or witness testimony.
Focus on presenting a clear timeline, highlighting the most
important documents, and explaining why the facts support
your client’s position. Resist the urge to over-brief legal
issues. Arbitrators often appreciate a more straightforward
presentation of the evidence.
Additionally, FINRA Rule 12507 allows parties to serve
written requests for additional documents or information
beyond the Discovery Guide’s lists. See also FINRA Rule
13506 (for industry disputes). These requests must generally
be limited to identifying individuals, entities, and time periods
related to the dispute, should be reasonable in number, and
cannot require narrative answers or fact-昀椀nding. As such, state
court-style interrogatories remain generally unavailable in
FINRA arbitration. See FINRA Rule 12507.
Manage the Hearing Schedule
FINRA’s ef昀椀cient design does not guarantee a short
hearing schedule. Multiple respondents, witness scheduling
dif昀椀culties, and additional motions even after the hearing has
commenced can extend a case well beyond the parties’ original
estimate, so build 昀氀exibility into trial preparation and witness
scheduling accordingly.
Because depositions are generally unavailable, the FINRA
Discovery Guide’s lists of discoverable documents are the
primary tool for obtaining evidence. Where the opposing party
resists production of discoverable documents, 昀椀le a motion
to compel promptly. FINRA panels generally enforce the
Discovery Guide’s presumptions.
Hearings can go for one or two weeks, pause for a week or
more while the panel and counsel attend to other commitments,
and then resume for additional hearing days. Litigators should
plan for this kind of intermittent, extended schedule rather
than assuming a single continuous block, and should build
in the 昀氀exibility to keep witnesses, exhibits, and case themes
organized and readily accessible across gaps in the hearing
calendar. Identify your strongest witnesses and evidence early,
organize exhibits for maximum ef昀椀ciency, and prepare focused
direct and cross-examinations.
Do not assume the expedited timeline means discovery
disputes will resolve themselves. Disputes over the
completeness of a production can resurface well into the
hearing if they are not tested and resolved beforehand, so raise
gaps promptly rather than waiting to litigate them in front of
the panel.
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